How an Executive Shuffle Played Into L Brands Q2

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When L Brands Inc. (NYSE: LB) reported its most recent quarterly results after the markets closed on Wednesday, the company said that it had $0.36 in earnings per share (EPS) and $2.98 billion in revenue. That compares to consensus estimates of $0.34 in EPS and $2.98 billion in revenue, as well as the $0.48 per share and $2.76 billion reported in the fiscal second quarter of last year.

The company also announced that Amy Hauk, currently President for Merchandising and Product Development of Bath & Body Works, will replace Denise Landman as CEO of Victoria’s Secret PINK. Landman will remain in the business through the end of the year to onboard Hauk and facilitate the transition.

In terms of its segments, the company reported as follows:

  • Victoria’s Secret net sales increased 4.7% year over year to $1.72 billion, with comparable sales decreasing 1%.
  • Bath & Body Works net sales increased 12% to $963.6 million, with comparable sales increasing 10%.

As a whole, L Brands’ comparable sales (including direct sales) increased 3% during the second quarter.

Leslie H. Wexner, board chair and chief executive of L Brands, commented:

I’m grateful to Denise for leading the growth of the PINK business and building such a strong high-performance team. Denise has always been a curious student of the business, focused on the customer and driven by her entrepreneurial spirit. Her contagious passion for the brand has built a true “PINK Nation” experience among college-age women and created one of the fastest growing specialty retailers of all time.

Shares of L Brands traded down more than 12% at $28.55 on Thursday, with a consensus analyst price target of $35.55 and a previous 52-week range of $30.42 to $63.10.

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